We use Dale of Norway's 100% wool Ara yarn, an
incredibly soft, painted bulky yarn which comes in the coolest blends of
colors and is available through KidsKnits.com at the best price on
the planet!

Note: The styling of
this hat is very versatile: you can wear it with the bottom edge rolled
up a bit, as pictured, or you can pull it all the way down, in case you
want to be blizzard-proof. The decreases form a neat-looking
spiral on top.

*K2tog, rep from * until only a few sts
are left on needles. Break off yarn, pull yarn through remaining
sts, gather sts tightly together. Pull yarn to inside of hat and
tie off. Bestow with hugs and kisses upon the head of your choice.